The iQ Domestic Income Model seeks to provide current monthly income with capital appreciation as a secondary objective.
The iQ Domestic Income Model selects Closed-End and Exchange Traded funds from the following Thomson Financial universe:
Investment Grade Debt
High Yield Debt
Begin with every domestically-traded closed-end and exchange-traded domestic income fund (including funds that own Treasury Inflation Protection bonds).
Rank by trading volume and keep the top 100.
Rank the remaining 100 funds by 6-month exponential price momentum and keep the top 40.
Rank the remaining 40 funds by 24-month Relative Strength Index (RSI) and select the top 10.
Rank the remaining 10 funds by dividend yield and keep the top 5
Re-balance every 3 months.